Sales Tax Exposure Risk
GMG CERTifyTax Outsourced Exemption Certificate Management Services Include:
- Converting paper certificates to electronic files allowing them to be hosted and retrievable in CERTifyTax
- Reviewing all existing certificates for validity and obtaining critical certificate information to accurately track certificate expirations as well as verify customer information
- Quantifying current exposure using detailed or statistical sampling methodologies
- Initiating “intelligent” data driven certificate acquisition campaigns to mitigate exposure related to invalid certificates
- Reviewing all newly obtained certificates
- Managing the prospective acquisition of expiring, missing, or invalid certificates
- Customer support staffed by our tax analysts
- Quarterly exposure analysis reviews with our tax attorneys and CPAs
We Identify Exposure
It is difficult to know where to start towards managing your exempt sales exposure and exemption certificate management process without gaining a granular understanding of where the exposure is and why it is occurring.
At GMG CERTifyTax we identify and quantify your current audit risk to devise an effective project plan to mitigate your sales tax exposure. We view exempt sales management as a critical element of your overall financial wellbeing and not merely an exercise in document storage. Our focus is on your bottom line not counting “good” or “bad” certificates.
As an example, we recently reduced a client’s $130 million dollar exposure by 84%.
We Save You Money by Reducing Risk
Presently, companies first become aware of the sales tax exposure they have related to improperly documented exempt transactions upon a sales tax audit. Many times, the assessment is as a surprise to the companies, resulting in a negative impact on profit margins. Additionally, efforts to obtain the properly completed exemption certificate during the audit is a struggle because many transactions had occurred 3 years prior.
As states struggle to generate tax revenue to meet budget projections, we have observed that assessments related to improperly documented exempt transactions have increased. Obtaining certificates years after a transaction may prove to be more difficult than before given the current economic environment due to turnover or customers going out of business.
GMG CERTifyTax takes a proactive approach in keeping our clients informed as to the amount of current exposure while devising a plan to reduce the risk by obtaining valid exemption certificates. Our certificate acquisition campaigns are driven by data analytics to return the most value for our clients. Finally, we provide our clients with quarterly risk assessment analyses so that there are no surprises on audit or to your finance department.
Is Your Business at Risk for Tax Audits?
Call (914) 798-9990 to speak with our experts or request information from our sales team by completing the form below.